The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Over the last three decades in the United States, services have become a smaller fraction of GDP relative to goods
Indicate whether the statement is true or false
The legislature is at a bargaining disadvantage because it receives most, if not all, of its information about the bureaucracy from the bureaucracy
a. True b. False
A movement along a supply curve is induced by a change in
A) input prices. B) taxes and subsidies. C) price expectations. D) the product's own price.
_____ is the primary determinant of consumption and is usually measured in terms of current disposable income
a. Household income b. Wealth c. Expectation d. Interest rate e. Tax liability